Rhodes holiday home market: 40 percent more enquiries

Written by Engel & Völkers on 9.6.2016

The market for holiday properties on Rhodes continues to witness a trend of positive growth. Enquiries from international buyers on the Greek island increased by around 40 percent, particularly in the second half-year of 2015. “The reason for this is Greece’s continued presence in the Eurozone and the record numbers of visitors on Rhodes last year,” said Georg Petras, Managing Partner of Engel & Völkers on Rhodes. The high level of demand for first-class homes on Rhodes can be attributed primarily to clients from Central Europe. Constituting 33 percent here, the largest buyer group is from German-speaking countries. Closely followed by clients from the UK (25 percent) and from France and Belgium (13 percent). Thanks to the strong market positioning of Engel & Völkers on Rhodes, the Residential Property Shop grew revenues by 8 percent in 2015 over the previous year.

Property prices in prime locations remain stableThe most desirable locations for holiday properties on Rhodes remain Lindos and the nearby resorts of Pefkos and Vlicha. In addition to classic villas, traditional captain’s cottages are especially sought after here. Interested buyers pay average prices per square metre of up to 4,000 euros for homes in very good locations. As much as 7,000 euros per square metre are fetched for captain’s villas and detached villas. There are also high numbers of prospective buyers on the east coast of Rhodes. Prices are developing at a stable level here, due to the limited availability of properties and the low level of new construction. Prices remain moderate here compared to Lindos. For houses, between 2,500 and 3,000 euros per square metre are paid on average. High-end holiday properties near the coast with direct access to the sea and outstanding views can reach as much as 4,000 euros per square metre. Prestigious properties on the island of Symi are also in strong demand. The Greek island is around 23 kilometres north of Rhodes and is known as the “Saint-Tropez of the Aegean”. Top properties sell for up to 4,000 euros per square metre here. “The price trend for second homes on Rhodes is currently stable to slightly rising. The current brokerage time for properties remains six to twelve months on average. Exclusive properties in premium locations usually sell considerably faster,” Georg Petras reports. The majority of holiday home owners on Rhodes acquire their residence either with low mortgage lending or without any at all.

Buying a property on Rhodes brings many advantagesFor more than 60 percent of buyers, holiday homes on Rhodes are a crisis-proof form of old-age provision and a secure income property. High prices in desirable locations on Rhodes are becoming increasingly detached from Greece’s second home market as a whole. The low transfer tax of 3 percent at present is an additional incentive for private buyers to invest in premium real estate. Additionally, and unlike many other regions in Greece, ownership rights on Greece are unequivocal thanks to the land registry office in place since 1937. Non-EU residents receive a residency permit for at least five year when buying properties worth upwards of 250,000 euros. “There has been a tangible rise in foreign buyer confidence on the real estate market in our region. Clients are making very swift decisions to buy thanks to the many attractive benefits this brings. We are therefore anticipating a growing demand for premium second homes over the remainder of the year,” said Georg Petras. The market expert is extremely optimistic about the prospects for the property market on Rhodes based on the first four months of 2016.

Rhodes is the main island in the group of Greek islands in the eastern Aegean Sea known as the Dodecanese. The island’s population is around 130,000, with approximately half of residents living in Rhodes Town, the principal city and tourist centre in the north of the island. With more than 300 days of sunshine a year, the Greek island is one of the warmest regions in Europe. Domestic and international guests are attracted to Rhodes by the countless beaches, diverse countryside, good infrastructure, excellent flight links to many European airports, and the wealth of culture on offer.